Fireside chat with Denise Read, SISIP Financial Counselor

“A young man came to see me who wanted to find a way out of debt,” Denise recalled. “I told him he needed a budget, and his girlfriend helped me persuade him to give budgeting a try. He didn’t want to follow the tried-and-true budgeting method that we’ve been using at SISIP for the past 50 years, but he did agree to go away and work on something on his own. 

“To my surprise, he came back to see me a month later. He flipped open his laptop and showed me a budget that he had created. He said, ‘I didn’t want children because I couldn’t see how I would afford it. But now I can potentially see myself as a dad.’ It was a powerful moment, and one of the reasons I work as a SISIP Financial Counselor.”

As a SISIP Financial Counselor, Denise Read’s job is to help service members live financially stronger lives. Here are some highlights from her January 2023 fireside chat.

What does SISIP offer to military members and families?

We offer three excellent services to current and retired military members. The first is financial planning, which encompasses everything to do with investing, building wealth, and planning for retirement. The second is financial counseling, which concerns budgeting, borrowing, and all the other day-to-day financial issues our members face. The third is insurance, which is really about placing a layer of protection around your family’s finances. 

Members have financial questions about relocation. How should they prepare?

It’s important to start preparing as soon as you find out you will be posted. That way, if adjustments are required, time will be on your side. I’d begin by looking at your expected expenses, and then comparing that to your income sources. 

What will your living costs be? Will you need two cars? What will your take home pay look like? Will your spouse be working? Will you need to dip into savings or credit to get started? And if you need a hand with any of this, a SISIP Financial Counsellor can absolutely help.

I’d also make sure to look at your insurance policies, because things can change, especially if you’ll be going from owning to renting or the other way around. 

Can you tell us more about how to build a budget and stick to it?

Sure, a lot of people think budgeting sounds painful, but what’s really painful is getting into a financial trap. A good budget will put you in control and keep you safe. Here are the main steps:

1. Calculate your income. This may seem simple if you receive the same pay every month, but don’t forget things like income tax returns, child tax benefits, GST rebates, interest income, and gifts.
2. Set some goals. They should be realistic and something you can measure. And really try to distinguish between needs and wants. Needing to pay the mortgage has to rank above wanting to go on vacation.
3. Make a list of your expenses. Separate fixed costs like housing and insurance from variable ones like food and gas. Also identify optional expenses like coffees and subscriptions.
4. Compare your income and expenses. If your expenses exceed your income, you’re going to have to look at ways to increase your income and/or reduce your expenses.
5. Develop a spending plan. The budget is useless unless you keep track of your spending and stick to the plan.
6. Pay yourself first. One of the best parts of budgeting is being able to put money into your investments on a regular basis and watch it grow.
7. And finally, review and adjust as you go. No budget is perfect, but if you’re always keeping an eye on it and adjusting as your life and your goals change, you will be successful.

When is financial counseling needed?

I’d say there are obvious times, and also some not-so-obvious times. 

One obvious time is when there’s a big change happening in your life, or you’re making a big financial decision, such as being posted, having a baby, buying a home or vehicle, or getting married or divorced. These events almost always trigger financial changes in your life. Another obvious time is when you’re feeling stressed. Maybe your debts are feeling unmanageable, or you have a garnishment on your wages or debt collectors calling.

One of the less obvious times is when things seem relatively stable on the surface, but you’re really not sure where you’re heading. Maybe you don’t have a budget, so you don’t know where your money is going. Maybe you’re not saving for the future. Maybe your debts are slowly creeping up and you’re worried. Maybe you wish you had an emergency fund. Let’s talk and together we can help find a solution.

Any tips for dealing with high interest rates and inflation?

The financial basics are really helpful at times like this. Know your goals, your financial situation and your budget. Know what you own and what you owe. If you don’t have an emergency fund, start one, even if it’s just $25 or $50 from each pay cheque.

Then you can look at some of the decisions in front of you. I’d hold off on large purchases because you don’t want to be taking on new credit right now. Look at your mortgage and consider whether now the right time to lock into a fixed rate. Pay down debt if you have the resources. Put extra money on the highest interest rates first.

Next, I’d take a look at your bills. What can you reduce or eliminate? Perhaps cell phone providers, internet providers, subscription services. Can you save on insurance? Can you save on groceries by buying bulk, reducing waste, or meal planning? Can you take advantage of discounts with CF1?

And finally I’d look at ways to potentially increase your income. That could be through additional part-time work, possibly a small business or side hustle, or some form of investment income.

How can we improve the visibility of the Financial Counselling service?

Anybody who lacks a detailed budget can benefit from financial counseling, so there should never be a stigma. And members should know that seeking financial counseling does not affect your career in any way. It’s totally confidential and your Chain of Command will not even know that you came to us.

We will all face financial challenges in life. If you need help, don’t beat yourself up, just ask someone from SISIP for advice. If you need to make cutbacks in your lifestyle, practice gratefulness. Focus on the good things that you have, not the things that you don’t. And no matter what happens, put your energy into what you can control, not what you can’t. Follow this advice, and I believe you will be happier, healthier and wealthier too.